Bonds From Mexican Airport That Doesn’t Exist Are in a Tailspin

Bonds sold to finance a $13 billion airport in Mexico City that was ultimately scrapped are among the region’s worst performers as investors question the revenue stream that backs them, Bloomberg News reported. Notes due in 2047 from the Mexico City Airport Trust had a volatile first half and are now poised for their fourth straight weekly decline. Their drop to 86 cents on the dollar from above par at the beginning of the year is the seventh-worst performance in the Bloomberg Barclays Latin America Bond Index. The notes have a tumultuous history. First sold in 2017 to fund a public-private partnership formed to construct a replacement for the capital’s aging and overcrowded Benito Juarez International Airport, the bonds crashed the next year after then President-elect Andres Manuel Lopez Obrador moved to cancel the project, saying it was a waste of money. Read more

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